Downing FOUR AIM share class provides tax benefits by investing in a high conviction portfolio, initially targeting holdings of between 15 and 20 companies, mostly listed on the Alternative Investment Market (AIM), and which have a focus on capital growth.
Your capital is at risk and you may not get back the full amount you invested. VCT investments are long term and high risk. Tax reliefs are subject to change and depend on personal circumstances. Past performance is not a reliable indicator of future performance. Please read full details of the risks here.
What do I need to know before investing?
How is my money invested?
Your investment in the Downing FOUR VCT AIM share class is looked after by Downing Fund Managers (DFM), led by Judith MacKenzie, who currently manage £370 million of investors’ assets (as of 30 June 2021).
Our fund managers have extensive experience in making AIM investments, and their robust research and due diligence process means that only companies meeting strict qualifying criteria are considered.
DFM take a ‘private equity’ approach to picking suitable investments, looking beyond a company’s numbers and current standing to focus on the long-term potential that could be realised with the right funding and support.
In line with the nature of the AIM market, DFM are a generalist investor. But unlike other AIM investment managers they have direct access to specific sector expertise through the wider Downing investment team, which can be invaluable throughout the stock selection process.
Combining ‘deep-dive’ research and due diligence with the breadth of Downing’s investment knowledge is intended to give you an initial handpicked portfolio of 15 to 20 companies in different sectors. The portfolio will be actively managed to keep it fresh and focused on aiming to provide you with growth on your investment. As it matures and if further funds are subsequently raised into the share class, we may seek to add more companies to your portfolio.
What are the risks?
As with all investments, Downing FOUR VCT has risks that you should be aware of and comfortable with before you invest.
- The value of your VCT shares can go up and down, so your capital is at risk. Any income received from your VCT shares can rise and fall.
- Shares in AIM companies are considered to be higher risk and more volatile than larger listed securities.
- VCT tax benefits are not guaranteed, are subject to change and apply only if you hold your shares for a minimum of five years.
- Maintaining VCT status is not guaranteed, which may result in you having to repay the amount you received in tax relief.
- It can be hard to sell your VCT shares compared to other stock market investments, so you should be prepared to hold them for the long term.
- The past performance of a VCT is not a reliable indicator of future results.
Please note, this is only a brief overview of the risks involved with investing in a VCT. Please read full details of all the risks in the Prospectus and Brochure before investing.
What are the charges?
Special offer: 1% reduction in initial fee for new investors or 1.5% reduction for existing Downing investors, if application is received by 29 October 2021.
Below is a summary of the fees that will apply to your investment in Downing FOUR VCT. For full details of all fees associated with this product, please refer to the brochure.
Initial fee 2.5% of the sum invested (via an adviser) or 4.5% (direct or via an intermediary) Annual management fee 1.75% p.a. of net assets. The total annual running cost is capped at 3% p.a. (this includes fees for audit and taxation advice etc.) Performance incentive
What happens once I've invested?
Once you have invested in Downing FOUR VCT we'll send you and your adviser an email confirming receipt of the application, so you can then arrange to transfer the funds for your investment. We will send you another email confirming that your money has been received. We intend to make share allotments, i.e. create and issue shares, at least once per quarter.
Shortly after your shares have been allotted, we’ll send you and your adviser an email, which will contain a PDF version of your tax certificate that you can use to claim income tax relief. You can expect to receive a share certificate in the post within 10 working days of an allotment. You'll need your tax certificate to claim income tax relief on your investment amount.
In July of each year, we'll send you the annual report and accounts to 31 March. Each January, we’ll also send you a half-yearly report for the six months to 30 September of the previous year.